In this article, we will list the 5 High Return Semiconductor Stocks to Buy Now. Please visit 8 High Return Semiconductor Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Silicon Motion Technology Corporation (NASDAQ:SIMO)
On May 12, 2026, B. Riley raised the firm’s price target on Silicon Motion Technology Corporation (NASDAQ:SIMO) to $312 from $250 and kept a Buy rating on the shares. The firm said AI investment continues accelerating faster than expected, with growing demand from hyperscalers and neo-cloud providers driving materially higher 2026-2028 capex expectations. B. Riley added that evolving workload trends and increasing chip intensity from major AI model providers are tightening supply-demand dynamics across semiconductors, supporting stronger earnings revisions and elevated sector valuations despite recent volatility.
Susquehanna analyst Mehdi Hosseini also raised the firm’s price target on Silicon Motion Technology Corporation (NASDAQ:SIMO) to $275 from $175 and keeps a Positive rating on the shares. The firm raised estimates across the board as Silicon Motion continues executing on market share gains and revenue diversification initiatives that are expected to gain traction through late 2026 and into 2027. Susquehanna added that it has gained greater confidence in the company’s long-term earnings power, with updated estimates implying annualized EPS of $10.50 exiting 2026 and as much as $12.30 by Q4 2027.
Silicon Motion Technology Corporation (NASDAQ:SIMO) designs and markets NAND flash controllers and related storage solutions for solid-state devices and enterprise applications globally.
4. Diodes Incorporated (NASDAQ:DIOD)
On May 12, 2026, Diodes Incorporated (NASDAQ:DIOD) announced that Keh-Shew Lu retired as Chairman of the Board, effective immediately, after more than 25 years with the company. The Board of Directors elected Angie Chen Button to serve as Chairwoman of the Board.
On May 8, 2026, Truist analyst William Stein raised the firm’s price target on Diodes Incorporated (NASDAQ:DIOD) to $139 from $98 and kept a Buy rating on the shares. The firm said the company’s cyclical recovery continues, supported by an above-seasonal Q1 performance and modestly above-seasonal Q2 guidance. Truist also noted that lead times are beginning to extend while inventories continue declining.
Earlier in May, Diodes Incorporated (NASDAQ:DIOD) reported Q1 adjusted EPS of 43c, versus the consensus estimate of 33c. Revenue totaled $405.5M, versus the consensus estimate of $395M. President and CEO Gary Yu said first-quarter revenue increased 22% year over year and 3.5% sequentially, reflecting continued demand recovery across automotive, industrial, and AI server-related applications. Yu added that the quarter marked the company’s fifth consecutive period of double-digit year-over-year growth and its strongest growth rate since Q4 2021. Europe led regional growth, supported by rising automotive opportunities and improving industrial demand.
Diodes Incorporated (NASDAQ:DIOD) develops and supplies semiconductor products across Asia, the Americas, and Europe.
3. nLIGHT, Inc. (NASDAQ:LASR)
On May 8, 2026, Raymond James raised the firm’s price target on nLIGHT, Inc. (NASDAQ:LASR) to $100 from $75 and kept a Strong Buy rating on the shares. The firm said Q1 results cleared a high bar and strengthened confidence in the conversion of defense programs, supported by improving visibility in munitions, growing international demand, and the higher-content HADES architecture. Raymond James added that it sees a credible path for nLIGHT to build a $500M-$1B defense franchise before 2030 with structurally higher margins.
On the same day, Needham also raised the firm’s price target on nLIGHT, Inc. (NASDAQ:LASR) to $80 from $70 and kept a Buy rating on the shares.
On May 7, 2026, nLIGHT, Inc. (NASDAQ:LASR) reported Q1 adjusted EPS of 20c, versus the consensus estimate of 8c. Revenue totaled $80.2M, versus the consensus estimate of $72.14M. The company expects Q2 revenue of $75M to $81M, versus the consensus estimate of $71.03M. At the midpoint, guidance includes approximately $58M in Products revenue and about $20M in Advanced Development revenue. nLIGHT also expects overall gross margin between 29% and 33%, with Products gross margin projected at 37% to 41% and Advanced Development gross margin around 8%. Adjusted EBITDA is expected to range from $8M to $12M.
nLIGHT, Inc. (NASDAQ:LASR) designs and manufactures semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications.
2. Synaptics Incorporated (NASDAQ:SYNA)
On May 8, 2026, Northland raised the firm’s price target on Synaptics Incorporated (NASDAQ:SYNA) to $123 from $106 and kept an Outperform rating on the shares after the company reported results above consensus expectations and guided the June quarter higher.
Susquehanna also raised the firm’s price target on Synaptics Incorporated (NASDAQ:SYNA) to $125 from $105 and kept a Positive rating on the shares. The firm updated its model following better-than-expected Q1 results and guidance.
On May 7, 2026, Synaptics Incorporated (NASDAQ:SYNA) reported Q3 adjusted EPS of $1.09, versus the consensus estimate of $1.01. Revenue totaled $294.2M, versus the consensus estimate of $290.13M. President and CEO Rahul Patel said the company delivered a solid fiscal third quarter, with double-digit year-over-year revenue growth driven by a 31% increase in Core IoT product sales. Patel added that revenue, non-GAAP gross margin, and non-GAAP EPS all exceeded the midpoints of guidance, reflecting strong execution. Management said that based on the midpoint of Q4 guidance, full-year fiscal 2026 Core IoT revenue is expected to grow more than 40% year over year to above $385M. The company also highlighted accelerating activity in Physical AI and Edge AI, supported by increasing customer engagements and design wins, while continuing to position its portfolio around emerging long-term growth opportunities.
Synaptics Incorporated (NASDAQ:SYNA) develops and markets semiconductor products for mobile, PC, smart home, industrial, and automotive applications worldwide.
1. Tower Semiconductor Ltd. (NASDAQ:TSEM)
On May 14, 2026, Susquehanna raised the firm’s price target on Tower Semiconductor Ltd. (NASDAQ:TSEM) to $330 from $180 and kept a Positive rating on the shares. The firm updated its estimates following the company’s recent results and outlook, as well as planned capacity expansion and revised long-term revenue and operating margin targets tied to the RF infrastructure ramp.
Benchmark analyst Cody Acree also raised the firm’s price target on Tower Semiconductor Ltd. (NASDAQ:TSEM) to $335 from $230 and kept a Buy rating on the shares.
On May 13, 2026, Tower Semiconductor Ltd. (NASDAQ:TSEM) reported Q1 adjusted EPS of 65c, versus the consensus estimate of 56c. Revenue totaled $413.63M, versus the consensus estimate of $410.98M. CEO Russell Ellwanger said the company delivered a strong start to 2026, supported by broad-based year-over-year revenue growth across its major technology platforms and continued execution of strategic priorities. Ellwanger added that Q2 guidance points to the highest quarterly revenue in company history, with sequential revenue growth expected throughout the rest of the year. Management highlighted strong customer demand, expanding content opportunities, and increasing contributions from the company’s differentiated technology portfolio, particularly in silicon photonics for AI infrastructure.
The company said it expects Q2 2026 revenue of approximately $455M, plus or minus 5%, representing 22% year-over-year growth and 10% sequential growth. Tower Semiconductor also said it expects sequential quarter-over-quarter revenue and margin expansion throughout 2026.
Tower Semiconductor Ltd. (NASDAQ:TSEM) operates as an independent semiconductor foundry serving customers across the United States, Asia, Europe, and other international markets.
While we acknowledge the potential of TSEM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSEM and that has 100x upside potential, check out our report about the cheapest AI stock.
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